16 November 2015Actuarial & underwriting

Captives to be discussed at NAIC meeting

Captives and risk retention groups (RRGs) are to be discussed when the National Association of Insurance Commissioners (NAIC) Financial Regulation Standards and Accreditation (F) committee on Thursday, November 19, 2015.

The committee is meeting from meets from 2pm to 3:30pm at the Gaylord National Hotel and Convention Center, National Harbor, Maryland, during the NAIC's 2015 Fall National Meeting.

The committee F agenda includes a discussion and consideration of exposure of updates to the Part A Preamble for RRGs and Part B Preamble. The materials for this committee topic include a memorandum that summarises the proposed revisions to both preambles,

The memorandum gives the reason the proposed revisions to the Part A Preamble for risk retention groups are being made: "In order to be consistent with the intent and format of the description of multi-state insurer in the revised Preamble, NAIC staff has drafted related revisions to the section related to the Scope of the Part A Standards for RRGs Organized as Captive Insurers."

Part B of the Preamble does not pertain to any captive insurer other than an RRG.

In relation to captive reinsurers, the memorandum states the "... NAIC staff will be assessing compliance with the new Part A Preamble, and it may be more appropriate to consider inclusion of captive reinsurers in Part B once that process has concluded."